Cost Per Impression

Definition

Purpose

Cost per impression, along with cost per click and cost per order, is used to assess the cost effectiveness of Internet marketing. Each has benefits depending upon the perspective and end goal of the advertising activity. Once a certain number of web impressions is achieved, the quality and placement of the advertisement will affect click-through rates and the resulting cost per click.

Construction

Cost per impression: The cost to offer potential customers one opportunity to see an advertisement.